Charter school management companies flex political muscle on education issues

Matt Dixon

Friday

Jun 21, 2013 at 11:15 PM

TALLAHASSEE | Jim Horne stood at a lectern addressing the House Education Committee. His testimony was relaxed. Like many Capitol regulars, pitching to lawmakers is a low-stress event.

He was at an April meeting in support of a bill that would create a slate of accountability measures for charter schools. The former education commissioner and state senator from Clay County now lobbies for a host of charter school companies and organizations.

Horne, like other supporters, backed the new accountability measures after a now-shuttered Orlando charter school paid its principal $305,000 in salary and bonuses and a $519,000 contract buyout.

Horne did, however, warn of overreach. "We don't want … to re-reregulate charter schools to stifle the one thing that has made them successful ­- being innovative," he said.

The message of over-regulation in recent years has come from a growing cadre of influential lobbyists hired by the industry. That increased spending to influence lawmakers has come at a time of rapid enrollment growth, a host of key policy wins and the redirection of state construction funding away from traditional public schools.

Much of the money driving that push has come from Charter School USA and Academica, private companies that manage charter schools.

Their expanded voice in the halls of the Capitol places the companies squarely at the intersection of politics and education policy. They oversee schools with just above 51,000 Florida students, up 115 percent since 2008. That's larger than 54 school districts.

They are not the only charter entities to lobby lawmakers, but during that same time frame they have increased their annual lobbying efforts from an estimated $270,000 to $445,000. Because firms must only report lobbying ranges, an exact number is not available.

Contract lobbyists for the companies include Horne, former Republican Party of Florida Chairman Al Cardenas and former state Sen. Al Lawson, D-Tallahassee.

'MANAGEMENT FEES'

Like traditional public schools, charter schools receive taxpayer dollars for items such as teacher salaries and education materials, but they are managed by nonprofit boards and private companies, not elected school boards.

In 2011 alone, charter schools paid Charter School USA and Academica nearly $25 million in "management fees" for those services, according to records filed with the IRS.

Ken Haiko, who is chairman for nonprofits that operate 26 charter schools managed by Charter School USA, says when large management companies successfully lobby for law changes, the entire industry benefits.

"All charter school students will enjoy more resources for their classrooms, all charter school teachers will receive increased pay and all charter school students will benefit," he said.

St. Johns County Superintendent Schools Joseph Joyner supports charter schools, but he has seen differences with the large charter schools run by management companies.

"They are large companies that make dozens of applications every year in dozens of school districts, and they are well funded and well connected," he said. "In my experience, I fail to see any of the innovative nature and innovativeness" seen in small charter schools.

Jonathan Hage, president and CEO of Charter School USA, says there are clear academic benefits for students who attend schools overseen by management companies.

"Proven education success and delivery; a Students First model; FCAT A-rated schools; the first SACS-accredited education management organization in the U.S.; quality teachers and data driven results; and ample opportunities for parental input and participation," he wrote in an email.

Because most charter schools receive high annual grades, Department of Education officials say the growth of students enrolling in schools overseen by a few private companies is not a concern.

Underscoring the rift between district-run public schools and charter schools, the state's top teachers union has been a vocal critic of the growing number of students enrolling in schools managed by private companies.

"The DOE [Department of Education] and the Legislature clearly favor these management companies and they don't face anywhere near the oversight that traditional public schools face," said Mark Pudlow, spokesman for the Florida Education Association.

Critics of FEA argue it's hypocritical for them to blast the charter school industry's influence because they are also significant political players. FEA has poured nearly $9 million into elections, much of that to the state Democratic Party, during the past five years. The union has faced recent setbacks in the GOP-dominated Legislature.

MONEY MISSION

In recent years, the legislative fight for education construction dollars has been fierce.

In the two most recent state budgets, lawmakers gave charter schools $110 million in construction money. During that time, no construction money has been given to district-run public schools.

Next year's $74.5 billion spending plan includes $91 million for charter school construction, a nearly $40 million increase from recent years. For the third consecutive year, district-run schools received no funding.

An increasing portion of the construction money has gone to schools managed by Charter School USA and Academica. This year, one-third of it went to those schools, up from 23 percent in 2008.

Because that money is doled out to eligible charter schools on a per-student basis, lobbying can't secure extra dollars for a school. The allocation for charter schools has remained at $55 million over the past two years, which means funding has thinned out as more schools became eligible.

"This is an important question," said Michael Kooi, head of the department's charter school division. "The per-student funding for newly eligible schools will decrease each year because the statewide appropriation remained static for several years."

Millions of dollars from that pot have flowed to financially distressed charters in recent years. From 2009 to 2012, nearly $7 million in state money has gone to charter schools that later closed their doors. In addition, $9 million has gone to schools that were approaching what state law deems a "financial emergency."

Kooi says a school in that position can continue to receive state construction dollars if it writes a "corrective action plan" that is approved by the state. He said money that goes to charter schools that later close is not "wasted" and would have been spent at the public school the students would have attended.

When a charter school closes, any property goes back to the school district.

"Two things are important with that," Joyner said. "You may be getting an asset that you can't use because it does not meet SREF standards [State Requirements for Education Facilities], or you don't need it."

Because it's based on a formula, an individual school can't lobby to get more construction cash, but the more charter schools a management company operates, the larger percentage of the money they will oversee. And when a local school board is considering an application for a new charter school, management companies chime in.

Joyner says he has concerns about a growing number of state construction dollars going to charter schools.

"I do feel like the oversight is lacking," he said. "I'm not actually familiar with any oversight at all."

He said several planning measures and safety standards applied to district-operated schools don't apply to charter schools.

For instance, Joyner said that charter school buildings must meet local building codes, but do not need to meet any local district or Department of Education standards.

Charter school operators argue they need the money because they don't have access to local taxes district-run schools can use for construction. This year, state Rep. Janet Adkins, R-Fernandina Beach, filed legislation that would designate $200 million annually for charter school construction.

"If we do not resolve this issue immediately, then school choice will cease to exist in Florida," she said while presenting her bill, which did not pass, during a committee meeting.

In 2012, she crafted a similar plan that would give charter schools access to local taxes district-operated schools currently use. That "local effort" has hovered around $7.7 billion in recent years.

Because state funds for construction have dried up, district-operated schools opposed the measure. They also argue it's a political hornet's nest to raise taxes in order to get more construction funding.

EYE ON EXPANSION

Charter school enrollment has increased from 117,040 to 203,199 over the past five years, a 73 percent increase. More than 72,000 students are on charter school waiting lists, according to self-reported data that schools give to the state. As a result, one of the biggest policy priorities for the charter school industry in recent years has been expansion.

For instance, the bill Horne testified on during the April House committee failed, but many of its provisions passed in a separate bill that made it easy for a number of charter schools to expand.

That bill (HB 7009) allows high-performing charter schools to set their own enrollment caps and allows them to enter agreements with local governments that no longer require they get government approval for permits related to construction and operation.

In 2011, another expansion bill allowed high-performing charter schools to add enrollment and grade levels without having to seek approval from the school district.

Those were big wins, but the industry has also had political setbacks in recent years.

Legislation - dubbed the "parent trigger" bill - that would have allowed parents to implement action plans for failing district-operated schools failed the past two years on dramatic 20-20 votes in the Senate. Because one of the options was turning the school to a charter, it was opposed by teachers unions.

"The for-profit charters were behind parent trigger the last couple of years, and they seem to have clear designs on expansion in Florida," said Pudlow, the FEA spokesman.

Haiko, the nonprofit chairman, says it's important for management companies to continue to lobby the Legislature moving forward.

"If large organizations like CSUSA [Charter School USA] did not expend the resources on behalf of charter school students, all charter school students would be left behind," he wrote.

Matt Dixon: (352) 233-0777

Never miss a story

Choose the plan that's right for you.
Digital access or digital and print delivery.

Stay Connected

Original content available for non-commercial use under a Creative Commons license, except where noted.
The Florida Times-Union ~ 1 Riverside Ave., Jacksonville, FL 32202 ~ Privacy Policy ~ Terms Of Service